Welcome to Introduction to Marketing!

1. Welcome to Introduction to Marketing! C55.0001 – Professor Eric Greenleaf Fall 2008

2. Today’s Agenda • Marketing successes and failures • What is marketing? • How is marketing different from other business skills? • Course details and your responsibilities

3. Most business successes or failures are caused by successful or failed marketing

4. What marketing successes and failures can you think of?Why did they succeed or fail?

5. What is marketing?

6. What is marketing? What is marketing at Apple?

7. What is marketing?1) Marketing strategy • Marketing Strategy - What is our overall plan for our product? • Consumer behavior • Segmentation • Positioning • Economic value of customers • Profit: Crunch the numbers

8. Don’t forget marketing research • “Eyes and ears” of the firm • Keeps you in touch with • Customers • Competitors • Trends in the marketplace • Be proactive, not reactive

9. What is marketing?2) The marketing mix – “Four Ps” • Marketing Mix – What actions will we use in the marketplace to implement our strategy? • Pricing • Product • Partnerships • Promotion (Communication)

10. Marketing mix is more than sum of its parts • Balance • Don’t put too much emphasis on any single activity in the marketing mix • Coordinate • Each part of marketing mix must work well with other parts –

11. What is marketing’s role in a firm? • One opinion on marketing’s role: • “If we want to know what a business is, we have to start with its purpose… There is one valid definition of business purpose: to create and keep a customer.” • Peter Drucker, a widely-read business school professor and former NYU faculty member (1909-2005).

12. Most successful concept of marketing • Effective marketing strategy satisfies consumer needs and creates consumer value while allowing the firm to achieve its objectives. • Concept we’ll study in this class • Let’s take a closer look at this concept

13. Satisfy customer needs • Define product or service in terms of customer needs = ?

14. What customer needs does this product satisfy? = ?

15. React to changing customer needs New York Times – 8.2.07

16. React to changing customer needs New York Times 7.24.08

17. Try to anticipate consumer needs

18. Create consumer value • Value = Utility - price • Satisfy needs at a price that consumers are willing to pay

19. Allow firm to achieve objectives • Expensive to satisfy consumer needs and provide consumer value • Firm must achieve its objectives • Marketing should be a profitable investment • Firm must understand and predict the bottom-line impact of marketing actions

20. Successful marketing creates valuable assets NYT 7/3/08 20

21. How can Google make money from YouTube? New York Times 7.9.08

22. Don’t overspend on marketing Source: “Satellite radio Howard's way Jan 12th 2006, The Economist

23. What marketing is not –Three outdated concepts of marketing

24. FIGURE 1-5 Four different market orientations in the history of American business

25. What marketing is not –Three concepts of marketing to avoid • Technology and production driven • Consumers care about needs and value, not technology vs.

26. What marketing is not – Three concepts of marketing to avoid • Selling driven

27. What marketing is not –Three concepts of marketing to avoid • Marketing driven • All three outdated concepts create a marketing mix that is out of balance

28. How is marketing different from other business skills? • Combines quantitative and qualitative analysis • Both kinds of information important for creating best strategy and mix • Use numbers to justify your qualitative reasoning • We’ll examine Quantitative Analysis in Marketing early in the course

29. How is marketing different from other business skills? • Marketing forces business to confront uncertainty in environment • Consumer tastes • Competition • Economic environment • Legal and Regulatory

30. What do consumers want in a beverage? WSJ 6/30/08 30

31. Does anyone need “land line” phones? NYT 7/23/08 31

32. Is your kitchen counter radioactive? NYT 7.24.08 32

33. Course details and your responsibilities Please read the syllabus carefully • Course calendar • Detailed description of assignments • Course policies and your responsibilities • Includes class honor code

34. Course details and your responsibilities Class Participation(15% of grade) • You are a very important part of course • We have very different backgrounds and experience • We learn a lot from each other • Make your class participation valuable • Everyone wants to know who you are • Please use name card every day: big, first name and last initial • Seating fixed from next class

35. Course details and your responsibilities Class Participation(15% of grade) • I would like to know more about you • Your first assignment: • Complete personal information form on back of syllabus • Include picture of yourself • Hand in at the next class

36. Course details and your responsibilities • Class Etiquette • Behave as in a business meeting • But have some fun • Let me know if you will miss class • Please arrive on time • Leave class only if absolutely necessary • Listen carefully to your classmates • Please, no disruptive side conversations

37. Course details and your responsibilities • Class Etiquette • Create a challenging but respectful environment for expressing ideas • Participate meaningfully, and allow others to participate • Stay with the topic we are discussing • Class time valuable

38. Course details and your responsibilities • Electronic Etiquette • No laptops • Turn off • Cell phones • “Blackberries” • MP3 Players • Any other unapproved electronic devices • No audio or video recording without permission

39. You are expected to follow the Stern Honor Code • Please read it carefully – URL in syllabus • http://w4.stern.nyu.edu/uc/currentstudents/codeofconduct.cfm?doc_id=5182 • Convincing evidence of cheating will be treated harshly • Cases may be turned over to Stern Judiciary Committee • Cheating cases pursued even if person has finished course or graduated • Degrees have been revoked • Submit assignments to TurnItIn online • At students’ request – protects honest students

40. Course details and your responsibilities Text: R. Kerin, S. Hartley & W. Rudelius, Marketing, 9th edition, Irwin/McGraw-Hill. Sets important foundation for class discussion • Class will be conducted under assumption you have done assigned reading for that day Hardcover, looseleaf, or eBook

41. Course details and your responsibilities • Articles from business and popular press • Show how concepts from class are used in the real world • You can link to these using Bobst electronic databases • e.g. NYU Virtual Business Library

42. Course details and your responsibilities Marketing cases: • Mediquip • Brita – written group case • James Patterson • Z Corporation • MontGras Vineyards – written individual case

43. Course details and your responsibilities Marketing cases: • Apply what you learn to an actual firm • Variety of products and industries • See complexities of marketing problem • Get involved in decision making • Cases have no single “right answer” • You should be able to justify your analysis • Case study questions in syllabus • Helps focus class discussion • Syllabus has advice on preparing a case

44. Course details and your responsibilities Major Assignments: • Quantitative marketing assignment 5% • Two midterm quizzes 25% • Brita group case 12.5% • MontGras individual case 12.5% • Market research assignment 5% • Final exam 25%

45. Course details and your responsibilities • Class materials • All assignments and slides on Blackboard • Will provide printed copies in class • Powerpoint slides • Help organize class material • Slides are not a substitute for your own class notes • Will not have Powerpoint for all classes • If you miss a class, get notes from at least two classmates

46. Teaching Fellows –They are here to help you • Shevon Newman • Christine Wang • Brady Warner • Each will have office hours twice a week in Marketing Dept., 8th floor Tisch

47. Next Class – Consumer Behavior I • How do consumers make decisions? • How can firms influence consumer decisions? • How do consumer decisions differ? • We’ll look at the consumer decision making process